Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
Section21.4: Costs Of Production: Total, Average, Marginal
Problem 1ST
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Question
B. using the diagram, determine the magnitude of the local market failure and the global market failure
C. suppose that the anvilianian government has given production subsidies to the firms in anviliania. as a result, the firms have increased production ( and the number of firms have increased). consequently, the aggregate MAC is now MAC (anvil) = 800 -2.3e -- determine the magnitude of the intervention failure
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800-
MDC (Globe)
Moc (Anvil)
40
*MDC (Globe)=-20+12e
* MDC (Anvil) = -40+10e
MAC (Anvil) = 750-2.3e
MAC (A)
60
emissions"
Transcribed Image Text:$/cost
800-
MDC (Globe)
Moc (Anvil)
40
*MDC (Globe)=-20+12e
* MDC (Anvil) = -40+10e
MAC (Anvil) = 750-2.3e
MAC (A)
60
emissions
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